jcinsf

The U.S Is Not Japan

Have read many interesting takes on the Japan comparison to the current US economy--some for and some against. I can't say that I have my own head around it yet, but rather, I just look for ideas here and there that might show us the way (and, knock on wood, a profitable one) out of this mess. The best one I've come across (can't recall where) suggested that a key in Japan getting some, any, headway on their problem was complete transparency in the banking system. They did a kind of government audit of the banks and let everyone see what everyone was holding. Unknowns were removed. Questions answered. And afterward, money started moving again. It may not have solved their "deflationary" spiral but it certainly helped. I'm struck by how little government can do and do well, especially in a timely manner (the US is proving this again). But what they can do is establish a regulatory process to promote/demand transparency; and the sooner it gets implemented the better.